Navigating the Digital Retail Media Maze: Making Every Penny Count in 2025

Hello there, my fellow retail media maestros! As we stroll into 2025, the realm of retail media is more bustling than the northern line on a Thursday morning. For those of us in the industry, keeping up is not just a task—it's a full-on adventure. So, let’s dive into the art of optimising retail media budgets and explore the intriguing dance between trade and incremental budgets in this brave new digital world.

Cracking Open the Budget Nut

You know the old saying, "If it ain't broke, don't fix it"? Well, in the world of retail media, it’s more like, "If it ain't broke, maybe it just needs a bit of digital polish." Traditional marketing budgets have been the trusty steeds of yesteryears, but as our audiences flock online faster than you can say "TikTok challenge," it's high time we reassess our strategies.

1. Spotting the Incremental Budget: It’s like finding a tenner in your old jeans. Start by reviewing existing marketing initiatives. Are some channels just not pulling their weight? Redirect those funds to pilot exciting new retail media opportunities. Think of it as a 'test and learn' approach—like speed dating, but with less awkward small talk and more data-driven insights.
2. Who Should Chip In?: Typically, the marketing departments hold the purse strings, but why not involve sales and e-commerce teams? After all, they’re the ones cashing in on those extra clicks. However, let’s be real—getting eCommerce teams to fork out media budgets is like asking me to give up my morning coffee. It’s tricky but not impossible.
3. The Role of Traditional Marketing: While traditional channels still have their charm, if your audience is more likely to be found online than at the local newsstand, maybe it’s time to shuffle the deck. Use insights gleaned from digital campaigns to inform traditional efforts. Think of it as cross-training for your marketing muscle.

Measuring What Matters

In the digital domain, metrics are our compass. But beware, focusing solely on ROAS can be as misleading as relying on the weather forecast for a British summer day.

1. Is ROAS worth the hype?: While ROAS is handy, it doesn’t paint the full picture. Dive deeper with metrics like Customer Lifetime Value (CLV) and Customer Acquisition Cost (CAC). These offer a more holistic view of profitability. And for those who love a good plot twist, consider factors like brand equity.
2. Incrementality Testing: This is your golden ticket to understanding the true impact of your campaigns. Although this has had all the buzz over the past 12 months getting a true test is not like what we are hearing in market and then getting consistency across platforms is even worse.

The Retail Media Revolution

Retail media has strutted onto the stage, stealing the spotlight from traditional trade marketing. But don’t fret; it’s not a hostile takeover, more of a delightful collaboration.

Crafting a Unique Retail Media Proposition: In a world teeming with media options, standing out is crucial. Retailers can now digitise in-store experiences, target customers across all of its digital assets and measure the impact of instore, offsite and onsite campaigns.

Collaboration is Key: Aligning retail media and trade marketing teams is essential. There needs to be more consistency across teams and bringing one voice to all the noise.

Conclusion: Embrace the Chaos

In this fast-paced digital landscape, the key is to remain adaptable and data-driven. Balancing traditional and digital efforts requires a skilful touch. By embracing change and collaborating effectively, we can ensure our retail media budgets not only survive but thrive in 2025.

So, here's to making every penny count, having a laugh along the way, and toasting to a prosperous year in retail media. Cheers! ??